IT Expense Management Costs 5X Less When Fully Outsourced

Taylor Graham — Tue, 23 Apr 2024 14:00:58 +0000

A recent Vanson Bourne study, commissioned by Tangoe, reveals that fully outsourced IT Expense Management (ITEM) solutions achieve faster results at significantly lower costs, demonstrating a fivefold reduction.

The study surveyed 500 IT and finance decision-makers from the US and the UK to explore their IT expense management practices. The research explored three approaches to IT expense management: fully in-house, fully external (third-party solution), and hybrid (a mixture of in-house and external solutions). Read the research report.

“As sprawling technologies and inflation consume larger proportions of corporate IT budgets, business leaders are growing increasingly concerned about their ability to sustainably innovate, including tracking spending, governing expenses, and stretching their IT budgets,” said Becky Carr, chief marketing officer at Tangoe. “FinOps programs mature quickly and yield faster time to insights and savings when leveraging a managed solution.”

ITEM Required for GenAI Success

Cloud infrastructure has been dominating IT spending trends due to recent accelerations in digital transformation and because it serves as the underlying enabler for AI innovation and new GenAI platforms. As the data reveals, financial management is central in safeguarding business continuity and innovation performance, especially when cloud spending will soon drain +50% of IT budgets and is only expected to grow with increasing GenAI adoption.

“AI can trigger unpredictable cloud costs, which is why ITEM software and services are being used to ensure innovation doesn’t drive a hidden layer of technical debt,” said Carr.

The findings spotlight the complexity of IT financial management and what’s at risk without it:

When it comes to tech sprawl there’s no end in sight. Respondents predict double-digit spending increases over the next couple of years with cloud infrastructure (20%) and software (16%) investments leading the way. Additional investments in mobile and telecom technologies aren’t far behind.
Business continuity and operational performance are at stake. Late payments cause 85% of organizations to experience outages in their cloud, mobile, and telecom services.
Managing services and expenses is growing increasingly complex. On average organizations handle 39 IT service providers with 60-80 employees involved in overseeing them.
Data analytics are among the top three challenges for in-house ITEM programs. Given the growing number of cloud applications and mobile devices in use today most companies can’t get past the first, most basic phase – applying advanced analytics and turning data into actionable insights.

The Value of a Fully Managed Service

In addition to putting context around the urgency and challenges associated with financial management, the study also reveals the advantage of using a fully managed service for IT expense management:

Businesses with either a fully outsourced or hybrid solution experience process efficiency and productivity gains (90%), faster time to business insights (88%), and faster time to cost savings (88%).
Only 66% of in-house programs deliver results within the first month, while 81% of fully outsourced solutions deliver results within the same timeframe.
Ninety-four percent (94%) of organizations using a third-party to manage IT expenses, also have a dedicated FinOps practice. Additionally, having a FinOps program leads to 20-28% lower spending across cloud infrastructure and cloud software.

The faster a company can find new ways to save and capitalize on those opportunities, the more money it can save to offset the cost of an ITEM service or reinvest into overstretched IT budgets. Eliminating manual processes and ingesting information with AI automation are essential to reducing the administrative work of data compilation and speeding up the time to savings. Fully managed services can make a meaningful difference by helping clients both find opportunities and act on them.

Learn more about Tangoe’s IT Expense Management (ITEM) solutions at the website here.

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Tangoe Announces New AI Patented Capabilities in FinOps

Taylor Graham — Wed, 28 Feb 2024 18:00:03 +0000

Tangoe announced the acquisition of another U.S. patent, reinforcing its array of distinctive FinOps capabilities that harness AI for cloud optimization. With this addition, Tangoe now boasts a total of 70 patents, with 14 specifically leveraging advanced AI analytics and robotic process automation for implementing FinOps strategies. This underscores the company’s dedication to innovation in IT expense management.

Companies are turning to FinOps to govern cloud spending amid unwavering demands for digital innovation, IT budget restrictions, and tech inflation. With Generative AI spurring more cloud spending, analysts expect cloud infrastructure to grow at a rate of 26.6% in 2024. As a result, there is an increasingly urgent need for cost governance.

“Patents are the hallmark of innovation, and Tangoe’s expansive intellectual property validates our deep history of ingenuity,” said James Parker, CEO, Tangoe. “As a 20-year industry pioneer, we’re also a trailblazer disrupting the market with exclusive ways to leverage AI for cloud optimization using the FinOps Framework.”

Granted by the U.S. Patent and Trade Office on Feb. 27, 2024, patent number 11,916,760, titled “Data Usage Analysis and Reporting” is a system and method allowing cloud service usage data to be captured, analyzed, and classified based on a range of categories. Further, this methodology provides usage reports so that costs can be financially allocated to different departments across any business.

Patents Pack 10 Years of Success and AI + FinOps Capabilities

Tangoe has been securing patents in AI-powered FinOps since 2014, predating recent trends in cloud cost governance. With five more patents pending and 10 years of experience in this domain, the company will continue to expand its portfolio of patented methodologies applying AI analytics to FinOps strategies. All 70 patents can be found here.

Tangoe explains its patents in the FinOps space as two functional families enhanced by AI analytics. While the first family extracts and classifies data, the second handles rules, restrictions, and reporting. Next, the Cloud Optimizer applies machine learning and predictive analytics. It compares multiple offerings to pinpoint the lowest-price Infrastructure as a Service (IaaS) while also considering any existing application demands and future predicted workloads.

“When cloud application performance is critical, Tangoe has a patented tool to show you which IaaS provider will give you the best bang for your buck based on your usage today and tomorrow,” explained Chris Ortbals, CPO, Tangoe. “This is an unparalleled advantage.”

FinOps Foundation Premier Member and Speaker

When organizations face challenges in controlling costs and using their cloud resources efficiently, they turn to software and services from recognized partners of the FinOps Foundation. In 2023, Tangoe joined the FinOps Foundation as a Premier member, and in June company leaders will present at the FinOpsX global conference.

For more information on the power of Tangoe’s FinOps and how it can transform your business, visit the website here.

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Tangoe – Digital IT News

IT Expense Management Costs 5X Less When Fully Outsourced

A recent Vanson Bourne study, commissioned by Tangoe, reveals that fully outsourced IT Expense Management (ITEM) solutions achieve faster results at significantly lower costs, demonstrating a fivefold reduction.

Tangoe Announces New AI Patented Capabilities in FinOps